Currency name(s): Tron or Tronix (TRX) – often used interchangeably to make a distinction between the network and the token used to operate the network
Genesis Block: March 2018 for Testnet; migrated to its own network (referred to as MainNet) and genesis block on the Tron network released June 2018
Total Supply: ~99 billion tokens; ~66.5 billion are currently in circulation
Algorithm: Google’s Snappy algorithm for compression and speed; DPoS consensus algorithm for authorization
Features: high throughput, high scalability, high availability within the network
Tron cryptocurrency network is, compared to Bitcoin and Ethereum, a relatively new network, but is nonetheless as ambitious as the older ones. The purpose behind the creation of the Tron network was to usher in a decentralized internet (Web 4.0 as it is referenced in the community) as well as the entire infrastructure upon which it is built by implementing a decentralized way to send and receive content – not through centralized servers but through decentralized nodes and utilizing blockchain technology. The concept is similar to that of the Theta network (which we covered in the past and you can read about it here) – however, Tron has set itself up to develop into a network where fast sharing of content is available, implementing distributed storage within the blockchain is possible, and fast and secure transactions are made quickly.
Although a relatively new cryptocurrency network, Tron has already gained a lot of attention, unlike Bitcoin which was invisible to the general public for some time after it was created. Namely, the TRON Foundation has acquired the company behind BitTorrent, a peer-to-peer file-sharing app, but its plans on how it will utilize this technology as a part of the network are still to be revealed. Another recent news item has been that Justin Sun, the CEO of the TRON Foundation, won this year’s annual charity lunch with Warren Buffet, a world-renowned billionaire investor and businessman. (An update on the Buffet-Sun lunch - it has been delayed. We have yet to determine the outcome of the delayed meeting.)
Although the Tron codebase was initially created as a fork of EthereumJ and is implemented in Java, it has a different mode of operation than ETH, which we will explain here. There are three layers to how the Tron network functions and these are: Storage Layer, Core Layer, and Application Layer. The Storage Layer consists of two parts: the blockchain storage and state storage. While blockchain storage stores data using Google’s Snappy algorithm within the blockchain itself, the state storage is stored in the nodes (the users’ computers) which is used to keep the information about newly forked chains and to protect the blockchain storage from termination.
The Application Layer is created for developers which want to build upon the Tron network and create DApps, decentralized applications which do not require an entity to function as a ‘middleman’, and end-users can interact and communicate among themselves.
And finally, the Core Layer which has several modules but the most important one is the consensus which is based on the Delegated Proof of Stake (DPoS), unlike the proof-of-work both Bitcoin and Ethereum use where a confirmation needs to be made through a lot of information processing using hashing algorithms. This takes up extensive computing energy, and proof of stake is much more efficient. The Tron network’s consensus uses the following proof of stake method. There are 27 Super Representatives (SR) for which TRX account holders who freeze their accounts can vote from a pool of many SR candidates. Those who want to vote for SR candidates must freeze the accounts in order to prevent any fraudulent or malicious attempts to disrupt the network and the voting process. Once elected, the SRs are then able to produce blocks which are then implemented into the blockchain.
This proof of stake method allows for a large number of very fast transactions to be made, thus the throughput values are large. Compared to Ethereum’s values, where 25 transactions per second can be made, or Bitcoin’s where only 3 – 6 transactions per second can be made, the Tron network can withstand 2000 transactions per second, and that number is bound to increase.
As Tron is making very bold moves within the crypto community and the markets, it is a very interesting token for investors to follow and read the news. While this cryptocurrency network is not disruptive to banks and fintech companies as many are used to reading about, Tron is set out to revolutionize the way entertainment is released to the viewers – it doesn’t need to be centralized, and it doesn’t need to be attached to one entity, but many can communicate through the network itself, make transactions and use the network to build upon its existing architecture.
Our Tron network market analysis has found that the price for the Tron token is experiencing minor fluctuations. At the moment, the price for one Tron token is around $0.032, with the overall market cap of ~ $2.2 billion. The lowest price the Tron token has ever achieved was $0.001, while the highest was $0.3 per token. Binance, Bittrex, and Bitfinex all allow Tron token trading on their platforms, both for fiat and other cryptocurrencies such as Bitcoin or Ethereum’s Ether.
For investors curious about the Tron token and the underlying cryptocurrency network, it is important to note that the network operates in a similar fashion to the Theta network. The Tron token, which can be bought off various cryptocurrency markets, is used both as a means of carrying value and as a way to govern the network and distribute ownership.
Below is a sample of some of the past work that BBA has done on the TRX/BTC market in order to illustrate the kind of value that we provide to full members:
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